limiting-kw-density-improved-sales
Case Studies
September 27, 2024

Limiting KW Density Improved Sales

Improving Amazon ad performance by splitting keyword campaigns

  • Too Many Keywords Can Limit Reach
  • The Solution: Split Your Keywords
  • Case Study: A Real-World Example
  • The Outcome: Higher Sales and Better ROAS
  • Conclusion

Managing Amazon advertising campaigns can be tricky, especially when you're working with large sets of keywords. If you've ever found yourself wondering why some of your keywords aren't generating impressions, or why your ads aren't reaching their full potential, you're not alone. Many advertisers face this issue, and the root cause often lies in how keywords are structured within campaigns.

In this blog post, I’ll dive into why having more than 25-40 keywords in a single campaign might be hurting your performance, and how splitting them up can unlock better results. I'll also share a real-world case study from one of the accounts we manage, so you can see exactly how this strategy plays out.

Too Many Keywords Can Limit Reach

When you cram too many keywords into a single campaign—say, 50 or more—you're essentially creating competition among your own terms. Amazon's advertising platform allocates your daily budget across all keywords, which can mean that only a few of those keywords get enough exposure to make an impact. The result? Some keywords generate lots of impressions while others barely get seen.

In one of our campaigns, we noticed that certain keywords were pulling in significant numbers of impressions, while others were almost completely neglected. This is common when keywords are competing for the same ad spend, leading to missed opportunities.

The Solution: Split Your Keywords

If you find that many of your keywords are struggling to get impressions, it’s time to split your list. By separating these keywords into multiple campaigns, you can give each set a better chance to perform. This strategy has worked wonders for the accounts we manage, and it’s now a fundamental practice for us.

Case Study: A Real-World Example

Let me show you how this strategy played out for a recent client we onboarded. We reviewed one of their existing campaigns and noticed something alarming—several keywords were producing very few impressions, despite the campaign running for over a week. In fact, 14 keywords had only generated a combined total of 14 impressions in the last seven days.

Our next step was simple: we paused these low-performing keywords and created a new campaign exclusively for them. Here’s how the performance shifted:

  • Week 1: After creating the new campaign, we saw an immediate boost. Over 15,000 impressions were generated, resulting in 5 orders, and a 63% ACOS. While the ACOS was relatively high, this was expected as the campaign was brand new and still finding its footing.
  • Week 2: With minimal optimization, we continued to see consistent impressions, with over 15,000 for the week. This time, however, the campaign delivered 12 orders, and the ACOS dropped dramatically to 28%.

The Outcome: Higher Sales and Better ROAS

While splitting keywords into multiple campaigns adds more management tasks to your plate, the benefits far outweigh the effort. A broader reach means more impressions, which often translates into higher sales and a better return on ad spend (ROAS).

A Final Tip: Campaign Naming Matters

When you're managing multiple campaigns, naming them properly is essential for keeping things organized. Clear and concise campaign names make it easier to track performance and quickly identify areas that need adjustments.

Conclusion

If you're finding that your Amazon advertising campaigns aren't reaching their full potential, splitting your keyword lists into smaller, more focused campaigns could be the game-changing strategy you need. It’s a little extra work, but as we've seen in our case study, it leads to higher impressions, better sales, and a stronger ROAS.

Take the time to evaluate your campaigns, split your keywords, and implement proper naming conventions—your future sales performance will thank you!

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